We all think it’s a panacea. If you don’t have enough money saved for retirement, you’ve got a few ways to close the gap between what you have and what you need in your nest egg: Save more, invest more aggressively, and/or work longer.
Well, it turns out that working longer is indeed an option, according to the Employee Benefit Research Institute latest study. The only problem is that the latest research shows that you’ll have to work much longer than you anticipated. In fact, many Americans will have to keep on working well into their 70s and 80s to afford retirement, according to the study, titled “The Impact of Deferring Retirement Age on Retirement Income Adequacy.”
What’s more, it’s even worse for low-income workers, according Jack VanDerhei, one of the co-authors of the study. Those who earned (on average over the course of their careers) less than $11,700 per year, the lowest income quartile, would need to defer retirement till age 84 before 90% of those households would have just a 50% chance of affording retirement.
We are blessed that Grandpère has a good pension, since I took 12 years off from the workplace while my children were young. Although I started working part-time at the age of 16, my wages were quite low. When I finished college and graduate school, I earned a small salary compared to today's wages. And even after I went back to work as my children grew older, I never made a great deal of money. Thus, my Social Security income computed from the average of my wages over the years is low enough that I'd be eligible for public assistance, if I were not married to Grandpère. My marriage saves me from poverty.
Some folks never want to quit working, and that's fine for them, but most of us get tired. What of the workers who do hard physical labor, whose bodies wear out, and they lose the ability to do the work?
All but the wealthy face a very different situation today. I most certainly would make different choices from staying out of the workforce for 12 years, and I'd have paid more attention to striving up the ladder of success in order to earn more money.
How brilliant of me to latch on to Grandpère and hang on to him for what will soon be 50 years. As I looked for a good YouTube version of Maurice Chevalier singing "I'm So Glad That I'm Not Young Anymore", I found the song below, which I like better, because it's all about me.
So I went from serious to silly in my post. So sue me.
You will let us know when you reach the big "Five O", right.
ReplyDeleteHappy Anniversary, in advance.
Elizabeth, I'll put out flags!
ReplyDeleteI don't want to sue, you've made me laugh... You're right though Mimi, we're all going to be living in cardboard boxes in our retirement, at least I am unless I can find a rich bloke prepared to fund my many vices, à la Grandpère.
ReplyDeleteExcellent, Cathy. I love making people laugh.
ReplyDeleteActually, it's sobering to think that I was not more concerned about planning for my retirement years. You'd think I'd grown up in the lap of luxury, but we were poor.
Mimi, yes it is true but if it gets any hotter I stop working.
ReplyDeleteAll right then, Fred. :-)
ReplyDeleteWell, w/ that Big, Fat Pension you're sittin' on, I just might sue you!
ReplyDelete;-p
JCF, the pension is from a state university. It's not that fat.
ReplyDeleteIt is rapidly becoming a sort of 21st Century serfdom; work until you are useless and then get thrown aside to fend for yourself; only your masters have rights or privileges.
ReplyDeleteMark, your summing up of the future is looking more and more like the reality.
ReplyDeleteMimi, sorry if this is on my mind on a single track....must be all these prop8 trials and hearings...but here's another thought. fortunately Grandpere's pension and social security will also keep you if (heaven forbid) something should happen to him.
ReplyDeleteThe gay couple down the street would not have that option; the surviving partner would not have access to the SS or pension of the lost one. They would be plunged into poverty.
Marriage matters in so many ways, but gay couples have the added worry of their surviving spouse not having coverage if one of them dies.
And meanwhile we deal with the lying Prop8 opponents claiming a gay judge can't be trusted.
I'm sorry, Mimi. I keep bringing despair where I should bring hope.
ReplyDeleteIf this future is seen, it can be avoided, but I don't know the specifics of how; that's why I keep burdening all of you with such a dreary vision, because you are all wiser and more knowledgeable about the in and outs of this world.
IT, don't apologize. What you say is so very true and unjust. GP has no social security, because he worked for the state for nearly his entire adult life. He is covered by Medicare through me, another benefit that a gay partner would not have. I hope the injustice is ended before too very long, but I fear the fix will not come soon.
ReplyDeleteMark, don't worry. My outlook for the future is pretty dreary, too, but my faith saves me from despair. My faith and my sense of humor take me far.
If the Republicans get their way, then we can all "sell a kidney to Ayn Rand Jesus" (Atrios)
ReplyDeleteAnd what will you do if Grandpere addresses you as "creamy dreamy Mimi?"
ReplyDeleteOh, that's very good, Atrios/Counterlight. It may come to that.
ReplyDeleteAnd what will you do if Grandpere addresses you as "creamy dreamy Mimi?"
ReplyDeleteAnything he wants me to do, Counterlight. :-)